MSCI Holds Up Well as Quarterly Rebalance Triggers Fresh Capital Flows

MSCI has unveiled the outcomes of its latest quarterly index review, setting the stage for sizable capital shifts as passive funds align with the revised benchmarks. Despite a choppy sector environment, the stock closed up 1.13% at $526.06, outperforming the broader backdrop as the week wrapped. Attention now turns to how the new weightings will be operationalized at the end of February.

Key changes at a glance:
- US market: IREN Limited is added to the MSCI USA Index, which covers roughly 85% of the free-float-adjusted market capitalization.
- India: Aditya Birla Capital and L&T Finance are newly included in the Global Standard Index; IRCTC is removed.
- Timeline: All adjustments take effect after the market close on February 27, 2026.

The market for financial-data providers has faced headwinds recently. S&P Global weighed on the sector midweek with a softer 2026 earnings outlook and concerns over AI-related investment costs. MSCI managed to resist the downside pressure on Friday.

Can MSCI sustain its operating margin amid widespread cost pressures tied to AI investments? The latest quarterly results for the period ended December 31, 2025 suggest a sound footing. Revenue rose 10.6% year over year to $822.53 million, and earnings per share came in at $4.66, slightly ahead of analysts? consensus estimates.

Focus on shareholder returns

Alongside its earnings trajectory, the company is increasing capital returns. The quarterly dividend was raised to $2.05 per share, and the board approved a new share repurchase program with a total authorization of $3 billion.

Should investors sell immediately? Or is it worth buying Msci?

Institutional investors have shown mixed moves. ProShare Advisors trimmed its stake in the third quarter, while the Baron Durable Advantage Fund expanded its position toward the end of 2025, citing MSCI?s strong positioning in data analytics as a key driver.

The proposed index changes will take effect after the close on February 27, 2026, a moment expected to bring noticeably higher trading activity in the affected stocks and across MSCI?s platforms.

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